The 2004 Higher Education Act introduced variable tuition fees of up to 3,000 British Pounds for full-time undergraduates in England. Higher Education Institutions (HEIs) charging the maximum tuition must give low-income students bursaries of 300 British Pounds. On top of this mandatory minimum, HEIs now provide additional discretionary financial support exceeding this level to these and other students. The degree to which these new bursaries and discretionary financial support have become a policy instrument for improving access and widening participation has not, as yet, been documented. Little is known about why the government introduced bursaries and what the government saw as their role. Even less is known about the type of bursaries HEIs have introduced or how they are being used, because up till now they have not been examined systematically. This article presents the first such analysis. It concludes that, from the evidence currently available, a mismatch exists between government aspirations and HEIs' actual use of bursaries and scholarships. Moreover, the bursaries and scholarships put in place may perpetuate existing divisions within and across higher education. (Contains 8 notes.)